Buying a new house that is unfinished

Alexandoy

VIP Contributor
For those planning to invest in real estate you can try buying a newly constructed house that is unfinished. In our village there are several such properties. I have learned that the houses were unfinished due to shortage of budget. One unfinished house is just 50 meters away from our home. If only I have the money then I would buy that big house and would surely need a loan to do the finishing.

My engineer cousin said that an unfinished house can be bought for a cheaper price because it is a non-earning asset. If the cost of the finished house is 5 million (in our currency) then the house that needs finishing can be bought for 3 million. Instantly you have a 1.5 million profit. That is a good food for thought to me.
 

A K Rao

Active member
For those planning to invest in real estate you can try buying a newly constructed house that is unfinished. In our village there are several such properties. I have learned that the houses were unfinished due to shortage of budget. One unfinished house is just 50 meters away from our home. If only I have the money then I would buy that big house and would surely need a loan to do the finishing.

My engineer cousin said that an unfinished house can be bought for a cheaper price because it is a non-earning asset. If the cost of the finished house is 5 million (in our currency) then the house that needs finishing can be bought for 3 million. Instantly you have a 1.5 million profit. That is a good food for thought to me.
One of my cousins who is an cost accountant is having his own consultancy agency and he deals with many banks where they want to auction the uncompleted houses. In fact the owners of these uncompleted having availed the loan, when get themselves failed in repayment then the banks try to auction such property. My cousin suggested few of such properties to me, which I never could purchase for the shortage of funds.
 

Sammyesx

Active member
Purchasing unfinished house is a good business, one of the advantages is that the owners will be willing to sell at a lower because one of the major reasons why the house is not completely is lack of funds, so if the buyer is very persuasive and very skilled in negotiating, he will surely get the house for a low price.
 

Setho

VIP Contributor
It is a very common thing for people to try to buy houses that are un completed around here . They actually come as the best deals because they actually come to you as a lot more cheaper because the people who are wanting to sell them are people who want to sell them because they need the money.
 
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